On Nov 13, Zacks Investment Research upgraded
) to a Zacks Rank #2 (Buy).
GLOBAL PAYMENTS (GPN): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
HIGHER ONE HLDG (ONE): Free Stock Analysis
WEX INC (WEX): Free Stock Analysis Report
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Why the Upgrade?
WEX Inc. has been witnessing rising earnings estimates on the
back of strong third-quarter 2013 results and an enhanced
guidance for 2013. Moreover, this financial transaction service
provider delivered positive earnings surprises in the last 4
quarters with an average beat of 3.4%. The long-term expected
earnings growth rate for this stock is 14.3%.
WEX Inc. reported third-quarter results on Oct 30. Non-GAAP
earnings per share came in at $1.29, surpassing the Zacks
Consensus Estimate of $1.20 by 7.5% and year-ago earnings of
$1.08 by 19.4%.
Earnings were primarily aided by solid volume growth, strong
Other Payments and favorable foreign exchange rate contributions.
This in turn fueled 19.2% improvement in the top line that
exceeded the Zacks Consensus Estimate by 1.3%.
Based on the solid third quarter performance, WEX Inc. raised the
2013 net income guidance to $171-$174 million or $4.37-$4.44 per
share from $167-$171 million or $4.27-$4.37 per share guided
The Zacks Consensus Estimate for 2013 increased 1.8% to $4.41 per
share as most of the estimates were revised higher over the last
30 days. For 2014, half of the estimates were revised higher over
the same time frame, lifting the Zacks Consensus Estimate by 1%
to $5.06 per share.
Last week, WEX Inc. also announced its intention to purchase the
assets of ExxonMobil's European commercial fuel card (Esso Card)
program in an attempt to widen its global footprint.
Other Stocks to Consider
Financial transaction service providers
Global Payments Inc.
Higher One Holdings, Inc.
), all with a similar Zacks Rank #2, are also worth